Global warming is happening before our eyes. Despite our best intentions, we cannot prevent this phenomenon as individuals unless countries around the world work closely together to limit greenhouse gas emissions – climate change is a global problem that requires collective action. One of the agreements addressing this topic is the Paris Agreement of the European Union, which assumes that by 2050, the EU will become the world’s first climate-neutral economy and society. Eliminating a carbon footprint is one of the fundamental steps every organization can (and should) take to mitigate its impact on negative climate change. So, where can we start? What is ERP and how can it help reduce greenhouse gas emissions?
ERP stands for
Enterprise Resource Planning. It is a
Business Management System, meaning it belongs to a group of advanced IT systems that comprehensively support enterprise management processes and automate business operations. There are countless opportunities to use ERP in virtually every area of an organization’s activity:
- production,
- finance,
- sales,
- project management,
- product management,
- planning,
- customer relationship management,
- supply chain management.
In reality, every industry can benefit from implementing an ERP. It is only important not to do it blindly, but
to first analyze the actual needs and automation opportunities existing within the company. When it comes to reducing an organization’s carbon footprint, a well-implemented Enterprise Resource Planning (ERP) system is perfectly suited for this. Why? Primarily through the automation and optimization of many tasks that previously required significant human effort and therefore took much longer. The company operates more efficiently and lowers its operating costs, saving time and actual materials used. By implementing an ERP, a company takes a big step toward complete digital transformation. ERP systems contribute to reducing a company’s carbon footprint by connecting the entire organization and synchronizing the work of every department. All employees work on the same data located in the same system, which makes monitoring process quality and potential losses very simple, transparent, and allows for effective prevention in real-time, which increases climate neutrality. Another way is the planning and forecasting we perform in ERP systems. We can see how the organization’s situation will develop in the coming months well in advance, making the optimization of resources used weeks ahead much easier, saving time and energy. How? For example, by eliminating partially filled shipments or allowing for the slowing down of recruitment processes in the case of IT companies hiring too many developers who would have trouble finding work on active projects if there are fewer of them. This forward-looking perspective and forecasting is one of the most important things if we want our business to prosper as efficiently as possible and not “burn” or waste energy without clear needs. Of course, thanks to ERP, we get rid of tons of paper used in the organization, and consequently – we significantly reduce the probability of errors, accelerate processes and decision-making, and at the same time make the company super-efficient because all information is within a mouse click’s reach – not in rooms filled with archival and often dusty binders. ERP systems can be implemented in the cloud, which in itself reduces the carbon footprint – Google Cloud Platform (GCP) and Amazon Web Services (AWS)
strive for climate neutrality and this makes choosing an ERP in one of these cloud environments help reduce CO2 emissions. There is also specialized software that can connect to our ERP system and analyze the data collected within it with the goal of tracking CO2 emissions, creating a balance sheet, and defining the carbon footprint. This makes it easier to take actual optimization actions and check if their application has a concrete impact on reducing our emission levels. All of this is a double benefit for the organization – on one hand, we become greener and care for the environment, and on the other, we increase our capabilities as a business and manage our resources more effectively, which also brings more financial profit. By having a better and more efficiently functioning company, it is easier to attract new, potential customers. Let’s remember that society is increasingly aware and wants to choose companies that actively regulate their emissions, so this positive spiral will eventually start to gain momentum on its own.
ERP implementation – challenges and ways to minimize them
ERP implementation is definitely a challenge for any organization. As we mentioned, if we feel we are not sure what will be best for us, we should not choose the first system that seems okay. There are really
plenty to choose from, but every company is different and every one needs different things to achieve maximum optimization. That is why it is a good idea to
seek advice from specialists who will conduct appropriate process analyses and determine what our business actually needs. There are
many factors we should be guided by when choosing the best ERP system for us. The company implementing our new product should be experienced and possess appropriate
references, which builds confidence that in our case, this move toward digital transformation will also work. If the system, even the best one with the highest user ratings, is implemented by a provider without appropriate qualifications, it may turn out to be a
total failure. Let’s remember that we must have proof that this specific ERP system will support our operations – that is why early analysis and matching the system’s capabilities to our actual needs is a must-have.
Summary of the benefits of implementing ERP for the company and the environment
Enterprise Resource Planning systems are the foundation for collecting data about our organization and conducting analyses based on them, which will directly or indirectly point to areas for improvement. This contributes to better management of the entire business, including better management of CO2 emissions. Thanks to ERP, we are able to plan, search for opportunities for more efficient management, and implement preventive measures if we notice potential blockers or inefficient actions in our processes.
